John Lewis boss warns UK economy faces 'permacrisis'

Peter Ruis, the outgoing managing director of John Lewis, has warned that the UK economy is experiencing a 'permacrisis' and urged the government not to increase business rates for large retailers. Ruis stated that external economic challenges are persistent and will not disappear.

He emphasized the critical nature of the upcoming Christmas trading period for the retailer, noting that the earlier Budget timing would be beneficial. Ruis expressed concern that a rumoured tax hike on business rates for larger retailers would have a 'terrible impact' on high streets and city centres. He argued that such a move would be detrimental to all retailers, as larger stores like John Lewis act as anchors that draw customers to town centres, benefiting smaller businesses as well.

Retailers, including Tesco, Sainsbury's, and Marks & Spencer, have voiced fears that the government might increase the business rates multiplier for stores valued over £500,000, which currently stands at 50.8p. Ruis advocated for a reform of the business rates system rather than an increase in the burden on large retailers, referencing Labour's manifesto pledge to replace the regime. He believes that business rates reform could positively transform the economy and employment, enabling investment in high streets.

In parallel, John Lewis is enhancing its digital presence, investing in a 'year-round content studio' to produce podcasts and social media content aimed at attracting Gen-Z shoppers. Ruis, who is departing after less than three years in the role, expressed confidence that the brand's relevance has been restored, stating that John Lewis has 'its mojo back'. He will be succeeded by former River Island boss Will Kernan.